‘Free trade with EU will go’ claims Fox

● Minister hints that ‘hard Brexit’ and membership of WTO on cards

Liam Fox and fellow senior Tories have insisted Britain can maintain free trade with the European Union and control over immigration after Brexit despite fresh warnings that it would be “impossible”.

The International Trade Secretary said trade with the EU can be “at least as free” as it is now, while former Cabinet minister Oliver Letwin insisted Britain should “have its cake and eat it”.

But Italian prime minister Matteo Renzi stressed Britain will not have full access to the single market while curbing immigration, saying it would be “impossible” to give the UK more rights than other noneu nations.

EU leaders have repeatedly said access to the free trade zone is dependent on allowing the free movement of EU citizens – seen as unpalatable by Theresa May and raising

0 Liam Fox has said trade witht he EU post-brexit can be ‘at least as free’ as it is currently the prospect of a “hard Brexit” leaving Britain outside the single market.

Dr Fox hinted the government may be leaning towards such a move, saying the UK would become an independent member of the World Trade Organisation postbrexit and comply with its tariffs and rules. He said the UK would then work with the WTO on “taking an axe to red tape across borders”.

He added: “The UK is a full and founding member of the WTO, though we have chosen to be represented by the EU in recent years. As we establish our independent position post-brexit, we will carry the standard of free and open trade as a badge of honour.”

But despite his suggestion of what is seen as a “hard Brexit”, Dr Fox insisted it was in the interests of EU countries to offer the UK free and open trade after it leaves the union.

The issue could dominate the Conservative Party conference, although Mrs May has taken an unusual step in scheduling a major speech this Sunday, the opening day, to address Brexit in a possible attempt to deal with it early before moving on.

Former deputy prime minister Nick Clegg described Dr Fox’s speech as “delusional” and urged him to make public the economic impact of leaving the single market.

The Liberal Democrat EU spokesman said: “The truth is that leaving the EU’S customs union and single market will bring a deluge of new Brexit red tape down on the heads of British businesses who export to the Continent.”